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Revenue Protection policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease, and revenue losses caused by a change in the harvest price from the projected price. The producer selects the amount of average yield he or she wishes to insure; from 50-75 percent (in some areas to 85 percent). The projected price and the harvest price are 100 percent of the amounts determined in accordance with the Commodity Exchange Price Provisions and are based on daily settlement prices for certain futures contracts. The amount of insurance protection is based on the greater of the projected price or the harvest price. If the harvested plus any appraised production multiplied by the harvest price is less than the amount of insurance protection, the producer is paid an indemnity based on the difference.

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Area Revenue Protection with Harvest Price Exclusion - A plan of insurance that provides protection against loss of revenue due to a county level production loss, price decline, or a combination of both. This plan does not provide upside harvest price protection.

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Area Yield Protection - A plan of insurance that provides protection against loss of yield due to a county level production loss. This plan does not provide protection against loss of revenue or upside harvest price protection.

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IP is a revenue product that, based on the individual producer’s APH, protects against a loss of income when prices an/or yields fall.  While IP looks a lot like CRC, it does not have the increasing price function of CRC.  The guarantee and the premium will be calculated using the spring-time generated price (projected price).  An indemnity is due when the revenue to count (production to count x harvest price) is less than the amount of protection.

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Yield Protection policies insure producers in the same manner as APH polices, except a projected price is used to determine insurance coverage. The projected price is determined in accordance with the Commodity Exchange Price Provisions and is based on daily settlement prices for certain futures contracts. The producer selects the percent of the projected price he or she wants to insure, between 55 and 100 percent.

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Livestock policies are designed to insure against declining market prices of livestock and not any other peril. Coverage is determined using futures and options prices from the Chicago Mercantile Exchange Group. Price insurance is available for swine, cattle, lambs and milk. Producers decide the number of head (cwt of milk) to insure and the length of the coverage period. There are two types of plans available: Livestock Risk Protection, provides coverage against market price decline, if the ending price is less than the producer determined beginning price and indemnity is due; and Livestock Gross Margin, provides coverage for the difference between the commodity and feeding costs. If the producer determined expected gross margin is greater than the actual gross margin, an indemnity is due.

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Producers must:

• Report acreage accurately,

• Meet policy deadlines,

• Pay premiums when due, and

• Report losses immediately.

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Producers will receive:

• Accurate answers to questions on types of coverage,

• Prompt processing of their policy, and

• Timely payments for covered losses.

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Although in recent years, RMA has streamlined the process of developing new policies, much has to be done before a policy can be made available nationwide, especially if it is a new type of policy or a policy on a crop which is not similar to any crop already insured. Generally, the process takes several years. 

In areas where an established crop policy is not available, farmers may request that their RMA Regional Office expand the program to their county the next crop year. They may also request that for the current crop year they be insured under a written agreement, a kind of individual policy which bases premium rates on data from other counties. Farmers are required to have at least 1 year of documented experience in growing the crop to obtain the agreement.